If the NRF report is to be believed, one of the biggest category jumps for Mother’s Day 2013 will be in electronics — specifically tablets and smartphones — which are expected to grow nearly 45% YOY to $2.3 billion.
There’s a bevy of ways to play this, but perhaps none need a Mother’s Day boost more than Best Buy (NYSE:BBY).
The specialty electronics retailer is enjoying something of a 2013 stock renaissance, but faces enormous long-term headwinds such as “showrooming” and the shift from bricks-and-mortar retailer to online shopping. Earnings and revenues have been in terminal decline for years, a buyout bid by its founder fizzled out, and Best Buy still has outlined few answers for its myriad woes.
However, Best Buy — which offers just about every tablet and smartphone under the sun — stands to benefit should the kids decide to upgrade Mom’s tech gear … you know, as long as enough people don’t look first, then buy at Amazon (NASDAQ:AMZN) later.
Plus, Best Buy also has another offering popular among older-age siblings that go for “group gifts”: appliances. While Mother’s Day gifts tend toward something of the luxury/leisure sort, occasionally the family will take the opportunity to upgrade the household — replacing a squeaky dryer or installing an oven that doesn’t shut off every 10 minutes.
It seems difficult to believe that BBY can keep up a year-to-date run of nearly 125%, but a booming Mother’s Day season might help keep the gravy train running just a little longer.
Kyle Woodley is Deputy Managing Editor of InvestorPlace. As of this writing, he did not hold a position in any of the aforementioned securities.